SEC says Mango Markets attacker stole $116M, violated securities laws SEC says Mango Markets attacker stole $116M, violated securities laws
Avraham Eisenberg faces permanent injunctions and penalties of an unknown amount.
1 min read
Updated: Jan. 20, 2023 at 9:41 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The U.S. Securities and Exchange Commission (SEC) has charged Mango Markets attacker Avraham Eisenberg, according to a Jan. 20 press release.
The regulator accused Eisenberg of manipulating the MNGO cryptocurrency token. Beginning in October 2022, Eisenberg used multiple accounts to swap perpetual futures and MNGO tokens. After driving up the price of MNGO, Eisenberg purchased $116 million of other crypto assets from Mango and virtually exhausted the platform’s funds.
One SEC member added that Eisenberg left Mango Markets “at a deficit” as its token price fell before recovering to levels prior to the price manipulation.
The SEC says that Eisenberg stole $116 million in this way. He is specifically charged with violating the anti-fraud and market manipulation sections of securities laws.
The securities regulator aims to have Eisenberg refrain from certain activities by obtaining permanent injunctive relief against him. It also seeks to have Eisenberg surrender his ill-gotten gains through disgorgement with prejudgement interest and civil penalties. It is not clear how much Eisenberg will be required to pay if he is found guilty.
The SEC also said that the MNGO token was offered and sold as a security. It added that investigations into other securities violations and other parties are ongoing. It is unclear whether Mango Markets or its operators are under investigation.
Two other agencies — the Southern District of New York (SDNY) and the Commodity Futures Trading Commission (CFTC) — previously announced charges against Eisenberg. The accused remains in custody, according to today’s report.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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